Martin Lewis explains how to pay 0% interest on debt

Money-saving guru Martin Lewis has revealed three golden questions that could mean people can cut interest on non-mortgage debt to 0%.

The money-saving expert’s advice would mean Britons struggling with their finances could pay off more of their debt each month rather than paying interest charges.

He revealed three questions people should consider if they are having difficulty.

  1. Are you struggling to meet your minimum repayments?
  2. Do you have more than a year’s salary as non-mortgage debt?
  3. Can’t sleep at night because of your debt?

Speaking at the Martin Lewis Money Show, the financial expert said, “If you answer yes to any of these questions then I would not use these solutions.

“Instead, I would go now and book a meeting with a nonprofit debt counseling agency: National Debtline, Citizen’s Advice, Stepchange, or Christians Against Poverty.

“They are not here to judge you, you can talk to them easily.”

But if your answer to these questions is no and your debt is more manageable, Martin Lewis has some general tips to help you stay in control of your finances.

He said, “My goal here is to show you how to reduce interest rates to 0% on most forms of personal debt.”

“This is a balance transfer.

He added: “Don’t just apply for one of them, use an eligibility calculator first.

“Once you have your choice of card, you want to go for the one with the lowest 0% fee in the term that you are sure you can repay.

“If you are not sure, just pay the highest fees, take a long time.”

Mr. Lewis explained that clearing bank overdrafts should be at the top of your list.

“A lot of people think: credit cards are bad, debit cards are good. But that’s no longer true,” he explained.

Most overdrafts are now at 40% which is higher than a credit card, which means it is a good idea to first clear your overdraft with a certain number of 0% overdraft buffers. , including M&S Bank and First Direct.

He also explained that a 0% money transfer card deposits money into your bank account rather than taking over another credit card’s balance.

For bad credit loans, Martin shared four tips for change.

  1. Ask your current lender for a “settlement figure”
  2. Find the cheapest possible loan that covers the settlement amount
  3. Find your figure “what’s left to pay” on your current loan (that is, the months remaining on your loan multiplied by the monthly payments).
  4. If the new loan is overall less expensive than the total outstanding on your existing loan, then move on.

“If it’s less than £ 3,000 I would look at a 0% money transfer card again,” he added.

The financial expert urged people to pay off debts with the highest interest rates first rather than the biggest debts and to encourage people to talk about any money issues with friends and family instead. than to suffer with them.

He said, “People should talk about more money.”

  • For money saving tips and tricks, be sure to visit the Money Saving Expert website. here

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